Asset 1 Has an Expected Return of 10% and a Standard

question 59

Multiple Choice

Asset 1 has an expected return of 10% and a standard deviation of 20%.Asset 2 has an expected return of 15% and a standard deviation of 30%.The correlation between the two assets is -1.0.Portfolios of these two assets will have a standard deviation ________.

• A)between 0% and 20%
• B)between 0% and 30%
• C)below 10%
• D)between 20% and 30%

Differentiate between variable, fixed, and mixed costs, including their behaviors in response to changes in activity levels.

Identify the characteristics and examples of committed fixed costs.

Understand the concept of step-variable costs and how they behave in response to changes in activity levels.

Comprehend the method of account analysis for classifying costs.

---

Definitions:

Significant Figures

The number of digits in a value that contribute to its accuracy, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 representing a part of a whole.

Cent

A monetary unit that is equal to one hundredth of the base unit of currency in many countries, such as the dollar or euro.

Accurate

The quality of being true, correct, or precise.